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UTX, Aeroflot Sign Supply Agreement

UTC Aerospace Systems, a division of United Technologies Corp. (UTX), was recently selected by Russian airline company Aeroflot to manufacture the wheels and carbon brakes for 16 Boeing 777-300ER Fleet aircraft. The Wheels & Brakes business of UTC Aerospace Systems located in Troy, Ohio, will manufacture the equipments for the aircrafts, the first of which is scheduled for delivery in Jan 2013.

As the flagship airline of Russia, Aeroflot provides domestic and international passenger services encircling 116 cities in 52 countries, focusing primarily on ecological balance in its operational areas. It is also the General Partner for the Sochi 2014 Winter Olympic Games.

UTC Aerospace Systems will use proprietary DURACARB carbon heat sink material for the 777-300ER carbon brakes. The strategic partnership should foster superior customer focus and extended brake life for the new 777-300ER fleet, with a 35% brake life advantage over its competitive products, thereby generating significant cost savings. Recently, in the fourth quarter of 2012, UTC Aerospace systems sales surged 60% year over year to $3174 million on the back of accretive acquisition.

Based in Hartford, Connecticut, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.

However, the company needs to be wary of its competitors, which include formidable names such as ITT Corporation(ITT) and Federal Signal Corp (FSS).

United Technologies currently has a Zacks Rank #3 (Hold). One of its competitors, Tyco International Ltd (TYC) carries a Zacks Rank #1 (Strong Buy).